This spec project on Riversville is reported as under contract today for around $4.75 million. A client of mine almost had it for a price that would make this one look like a gross overpayment, but regardless, this sale is not going to be good news for other spec builders. Six acres, 8,000 sq. ft. above ground, at least 3,000 more in the walk-out, finished (with fireplaces, theatre, nanny quarters, etc. basement), high quality construction and all in all, a very nice house. When a spec house on Beechcroft sold for $2 million less than another spec house across the street, the agent for the higher- priced house was furious at my suggestion that his listing had just taken a serious hit. Well, that higher-priced house isn’t quite so high now – it was reduced a week or so ago, and it remains unsold. And now comes this. Appraisers have to use actual sales when calculating the value of a specific property, and as sales like this join the data bank, they’ll crowd out all the hoped-for asking prices of similar houses available from other builders.

By the way, at this price, the builder will be lucky to pay off his $4 million mortgage and recoup a tiny fraction of the extra millions he put into the project. He’s got another house, also listed for sale, at 223 Stanwich Road and I wouldn’t be all that surprised if that, too, goes at a very low price. Which again, isn’t going to help prop up Greenwich house prices.

Comparables are useful datapoints, but not always statistically relevant

FPC land trading price is prob more useful than that of McMansions in locales w/more commodity-like (and controversial) land

Suspect many prospective buyers know what peers/admired figures in financial industry paid for “premium” land in Greenwich in ’90s….and would hate to be ridiculed by their peers for overpaying for any commodity

let’s face it, Chris – Riversville Road is a different market from Round Hill or even the Stanwich/North Street area – lots of people don’t want to be way over there…away from downtown.
…and the house has an unpleasant goth quality to it architecturally – not a Georgian colonial by any means. Looks like their 434 Cognewaugh Road house – rather funky ugly.

This is an ugle modular mcmansion in an undesirable location. The building cost here is $150 per foot. Drive around central Jersey or North Stamford and you’ll see rows and rows of these things selling for $1-2 million apiece. So if the builder told you it cost $350/sf to build it, then he lied and pocketed the margin. $4.75 million is a gift. However, I would not use this as a comparable for a beautiful house in a beautiful location. Apples and oranges.

Substract the builder’s profit margin markup and you’ll get to $150/sf. If not, then it would not be possible for almost identical dwellings to sell in North Stamford and Jersey (same labor costs) for $1 – $2 million. (10,000 sf x $150/sf = $1.5 mm). The true bubble in Greenwich is the fact that people believe the “high cost of build” nonsense pumped out by the general contractors. As far as “modular” I meant to say the style of this home. Go to modularconceptsllc.com and see if those photos look any different than this one.